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Audi Q7 Lease Questions

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Comments

  • tmorefitmorefi Posts: 6
    Thanks. After researching posts on this site, I will not be putting money down. thank you. But what is the reasoning for not doing a lease for 20k miles? We've averaged 17.5k/yr for the last 4 yrs and do not want to do have to worry about going over the miles.. Thanks again
  • hspderhspder Posts: 13
    As I mentioned before, you're just better off doing a lower mileage lease with AFS (which has very, very low Money Factors for this car) and trading in your car at the end of the lease (or keeping it -- you'll be surprised how hard it will be to part with your Audi...). Yes, you might be slightly upside down, but it's better than the cost of opportunity of a higher monthly payment.

    If you don't believe me, do this: get quotes from the dealer for 20k/mi year and 10k/mi year leases (make sure you ask for AFS at least on the latter).

    Then take the difference in monthly payment, and calculate how much money you would have after 36 months by investing that difference every month -- let's be conservative and assume 7% interest after tax.

    Then look at the difference in residuals at the end of the lease, and compare that difference with how much money you will have in the investment...

    You'll get it.
  • tmorefitmorefi Posts: 6
    Still a bit confused, I'm sorry. I will be putting 18k miles a year on the car so if I do a 10k/yr lease, won't I pay a ton in fees for the extra miles above the 10k? I most likely will trade the car in at the end but not sure what the AFS has to do with it. Interested in calling me and explaining it? Supposed to go back to the dealer tomorrow. If so, email me at tmorefi@gmail.com and send you my number. Thanks for any and all help.
  • hspderhspder Posts: 13
    I need to get going (business trip) so this will have to do:

    AFS = Audi Financial Serivces

    You will only pay overage fees if you turn in the car. If you trade it in, you pay no mileage fees. Your trade in may be lower than the payoff on the lease, but what I explained above is that with the low Money Factors AFS has on the Q7, even if you need to compensate for the difference (you're "upside down"), it will be lower than what your cost of opportunity on the difference between payments (depreciation).

    This is the best I can do to explain it. If in doubt, run the numbers as I said before.
  • f1freakf1freak Posts: 4
    I too am interested in the May MF and residual for the Q7 3.6 Premium, 10K/year, 36 months.
  • hspderhspder Posts: 13
    Two different dealers have told me that there have been no changes since 4/20/07. These are the numbers for that date:

    The below is for 15K miles/year. Add 2% to Residual for 12k mi/yr and 3% for 10k mi/yr on all terms

    Add 1% residual if you get AudiCare (which adds $590 to the cap cost).

    2007 Audi Q7 3.6 Premium
    24 Month – Residual 60% of MSRP – .00038 Base Rate
    36 Month – Residual 51% of MSRP – .00038 Base Rate
  • tmorefitmorefi Posts: 6
    Here's my latest from my dealer. Does it look ok? Anything else I can push for? I'm new to this leae thing so still learning. Thanks.

    '07 Q7 4.2 Premium
    MSRP 62260
    Selling price 59900
    15k mls/yr + 5k in $.15 prepaid miles for a total of 20k miles (Yes, I do need all 20k/yr)
    Residual % .45
    Residual amount 28017
    mileage adjustment 2250
    adjusted residual 25767
    rate 1.5
    zero down
    base monthly 1076 + tax
  • hspderhspder Posts: 13
    I'm not going to try and explain again why you shouldn't do the 20k -- it WOULD save you at least $400 at the end of the lease, but I can't explain it any better than I already did. And I guess taking my word for it is riskier than just forgetting about the $400... :-)

    Even discounting that, your monthly payment is EXTREMELY high.

    First you're being robbed on the price. $2,360 under MSRP is highway robbery for a 2007 4.2 Premium at this point in the year. You should be getting pretty close to invoice, or even below it. They want to get rid of the car. I wouldn't offer a cent over $58k -- probably less.

    Your residual also looks like at least they didn't add AudiCare -- ask them for it!

    Your cap cost also looks strange (doing a reverse calculation) -- I'm assuming that you're on a very low drive-off (i.e., everything and their mother is being added to the cap cost).
  • tmorefitmorefi Posts: 6
    Ya, I'm not really getting the lower mileage thing. i talked it through a few times and given I am 90% sure I will not buy the car at the end (I never keep a car longer then 3 yrs), and will put 20k miles on it, it just makes sense to me this way.

    Nevertheless, I will definitely work on the selling price to get at or below invoice. They did forget to put the Audi care into these numbers and I will be doing that. These are the drive off #'s right now. Which of them can/should I try to get them to scratch.

    1 month's payment = 1165.46
    doc fee = 45
    acquisition fee = 575
    upfront fees = 441
    upfront taxes = 51.15
    total initial payment = 2277

    thanks again,
  • hspderhspder Posts: 13
    They can't scratch any of those, that wasn't my point;

    If that's your total initial payment, the cap cost should be the price. However, if you run the numbers, they don't add up. Check yourself:

    Use the following formula to calculate a lease payment (assuming you're paying all the fees upfront like you say above):

    (Price – Residual Value) / Term = Depreciation
    (Price + Residual Value) X Money Factor = Interest
    Depreciation + Interest = Base Monthly Payment

    Using the above, with the numbers you gave, the base monthly payment (i.e., before tax) is about $40 below the one you got quoted. Something doesn't add up.
  • rjlaerorjlaero Posts: 659
    20k miles a year kills your residual. But the 10k down does sound quite high.
  • aveghteaveghte Posts: 68
    These sure dropped on May 20th!

    Down from 50% to 47%!

    So much for a good deal on the 4.2 base.
  • hspderhspder Posts: 13
    You mean the residuals?

    Yeah, we're at the end of model year, so the residuals are going to go down pretty quickly. You'll only get a good deal if you buy very close to or below invoice at this point...
  • mdiabmdiab Posts: 7
    I am confused - if you are talking residuals going down with the same money down, payments etc isn't that a good thing?? Lower residual makes it more attractive to purchase at the end of the lease.
  • kyfdxkyfdx Posts: 27,652
    But.. it makes the payment higher.. If you just want to rent the car for the lease term, you want a high residual, all things being equal.

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • kris17kris17 Posts: 18
    I'm sorry I have'nt replied to this posting since I've been to busy enjoying my 4.2 :) One thing all 4.2 owners MUST do at least once... role down all the windows, turn down the radio, put the transmision in "sport mode", and accelerate hard from a slow role. What a sound this engine has!!!

    As for what my payments are, (please see original post) I put down aLot of cash (I know I should'nt have..) but this $11k exactly, so for taxes/tags, 1st month, sec. deposit, aduicare, some silly port caharge, destination, processing fee...anything esles? Probably, but my payments are $597/month for a Q7 Prem. with 20"wheels, towing and I'm in love....
  • kermaloukermalou Posts: 4
    I am looking at the current Audi special on the Q7, and it still sounds a little expensive, has anyone gotten a better deal than the special?
  • aveghteaveghte Posts: 68
    Are the current residual and money factor for a 3.6L Premium Audi Q7 50% and .00019?

    With Audicare is the residual bumped up to 51%?

    I have heard that security deposits can lower the money factor. Is this .00019 money factor valid for $0 security deposit or does it assume a standard security deposit (e.g. $750). What is the money factor with $0 security deposit?

    Thanks!
  • ody02tjkody02tjk Posts: 66
    I tried to lease a Q7 4.2 premium yesterday, and was quoted a residual of 47% on a 3 year 12K miles lease, with the Audi care. From what I have read, the residual has come down since April, as they 2007's are nearing the end of the model year. I did not ask about doing $0 secruity deposit. With a price of $57K ($500 over invoice), the lease payment they quoted me, with taxes tags, acquisition fee rolled in, was $1000.48 per month. I walked on it.
  • cottermcotterm Posts: 14
    thats odd. I was quoted 856 for the same lease terms on an s-line. First payment and license fees.
This discussion has been closed.